This year, we will invest 40% of capex for CV biz on futuristic mega trends: Tata Motors' Girish Wagh

This year, we will invest 40% of capex for CV biz on futuristic mega trends: Tata Motors' Executive Director Girish Wagh

Tata Motors' top executives, on June 26, gave updates about the company's future plans and the demerger of its CV and PV businesses.

Tata Motors CFO PB Balaji said he's confident that Jaguar Land Rover will go debt-free next year and that the company's focus is on pivot to luxury.

"Our focus in trucks and buses is to maintain product superiority, include multi-fuel options. Focus on value selling. Increase the penetration of value added services. This year, we will be investing 40% of capex for commercial vehicle business on futuristic mega trends," said Tata Motors Executive Director Girish Wagh.

Wagh said the demerger should happen 12 months from now.

In March this year, the Mumbai-based automaker announced a value-unlocking exercise to demerge its Passenger and Commercial Vehicles segments into two separate listed entities. As part of the initiative, the CV business and its related investments would be part of one entity. Similarly, PV business, including electric vehicles, Jaguar Land Rover and its related investments, will come under a separate listed entity.

Tata Motors Electric Mobility head Shailesh Chandra said: "Expect Indian auto industry would touch 6 million units by FY30. Growth will be driven by rising disposable income."

Tata Motors

"We are targeting a market share of 18-20% by FY30," said Chandra.

"FY24 volumes are close to FY19 peak. Q1 could be soft, industry has held up well. From second half of Q2, should see a good pick up. Good infrastructure push from the government augurs well for the industry," said Wagh.

"The company aims to increase addressable market by 80% by FY30 (for EVs). We are going for deeper localisation to manage costs," Chandra added.

Target is to hit 10% EBITDA (PV and EV both) and H2 is going to be faster in terms of growth as compared to H1, said Chandra